Silver Range Resources Ltd. (TSXV:SNG) is distinguished by its project generator model and a robust portfolio of high-grade precious metal targets. With a significant portfolio composed of multiple properties, including several under option and four converted to royalty interests, Silver Range is able to make substantial strides in the mining sector. From its unique approach and ideal project locations in underexplored regions of Nevada, there’s more to the story of why this company is an undervalued option with serious upside potential.
The project generator model: a winning strategy
Silver Range employs a project generator model, which focuses on identifying and acquiring high-potential mineral properties and then seeking joint venture partners to fund further exploration. This model allows the company to mitigate risk, reduce capital expenditure, and leverage the expertise and resources of its partners. By maintaining a diverse portfolio and continuously seeking new joint venture opportunities, this company is likely to keep steady progress finding potential discoveries without overextending its resources.
Impressive portfolio and strategic partnerships
Silver Range’s portfolio is extensive and diverse, featuring 42 properties spread across various regions. The company’s strategy of optioning properties to partners has led to 14 properties currently under option agreements. On top of this, four projects have been converted to royalty interests, ensuring future revenue streams with minimal ongoing investment. Silver Range’s active pursuit of new joint venture partners underscores its commitment to unlocking the value of its high-grade precious metal targets.
The Skylight Property: A jewel in Nevada
One of the standout projects in Silver Range’s portfolio is the Skylight Property, situated in the Republic Mining District on the west side of the Royston Hills in Nye County, Nevada. This property holds significant promise for investors because of its geological potential, with a fully intact epithermal gold system remaining to be drilled.
Location and access
The Skylight Property is located in a region known for its rich mineral epithermal deposits and history of successful mining operations, including the Tonapah and Goldfield mining districts. The Republic Mining District, within the larger Walker Lane Mineral Belt of Western Nevada, is renowned for its prolific mineralization, particularly in precious metals such as gold and silver. Recent discoveries such as Anglogold Ashanti’s 13Moz gold Silicon Project. The property benefits from excellent accessibility, with well-maintained roads connecting it to major highways and nearby towns, facilitating ease of transportation and logistics.
Geological overview
The property sits within low-lying hills on a formation that is prospective – a volcanic sequence with silica caps at the hilltops. This indicates that the epithermal gold system is likely fully preserved. Concentrated gold mineralization typically occurs at 200-300m below these silica caps in these epithermal systems.
“The epithermal system at Skylight looks intact, we know it’s a gold-bearing system from previous drilling along the base of the hill, yet the core of the system where high-grade feeder structures may lie remains untested over one kilometre of strike,” said John Gilbert, Vice President at Silver Range. He further adds, “Drill-testing with a more refined target model, aided by induced polarization geophysics that we’ve already conducted, is the next step to test these targets at the system’s potential feeder zone. It’s ready to drill.”
Epithermal systems can produce high-grade zones of gold with robust economic profiles.
Exploration highlights and potential
Silver Range undertook a systematic exploration program on the Skylight Property to assess its mineral potential. The exploration strategy included detailed geological mapping, geochemical sampling, and geophysical surveys. Initial results have indicated the presence of gold intercepts in drill core suggest the core of the system has potential for hosting a high-grade ore body.
In addition to surface exploration, Silver Range plans to implement a series of drilling campaigns to further delineate the mineralization at depth. This phased approach aims to de-risk the project and provide a clear understanding of the property’s resource potential, laying the groundwork for future development and production.
The peripheral veins contain low-grade gold, with historical surface sampling yielding values up to 2.04 grams per tonne gold (g/t Au). In 2017, Silver Range conducted sampling and obtained peak results of 0.86 g/t Au and 67.6 g/t Ag from a set of 24 grab samples.
Market capitalization and investment proposition
Silver Range Resources currently has a market capitalization that suggests it is undervalued relative to its assets and potential. This discrepancy provides a compelling opportunity for investors seeking exposure to a company with significant upside. The combination of an extensive and high-grade property portfolio, the efficient project generator model, and strategic joint venture partnerships positions Silver Range for substantial growth.
This mining company represents a promising investment opportunity in the mining sector. The company’s project generator model reduces risk while maximizing exploration potential. With a portfolio of 42 properties, Silver Range is in a position to strike significant discoveries. The company’s current market capitalization does not fully reflect its asset value and growth potential, making it an attractive option for investors seeking undervalued opportunities in the mining industry. Given these factors, Silver Range Resources merits deeper due diligence and consideration for investment portfolios focused on high-growth potential in the precious metals sector.
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(Top photo: Silver Range Resources Ltd.)
